China Pacific Insurance Group Co Ltd

Improving ESG governance structure. The Board of Directors was responsible for overall supervision of ESG planning, implementation and management to ensure continuous improvement of sustainable capabilities. The Strategy and Investment Decision and ESG Committee was responsible for supporting the Board of Directors in ESG decision-making and played a central role in ESG management. The Strategy and Investment Decision and ESG Committee has set up the ESG Office as the day-to-day ESG promotion department. [...] The report discloses in detail CPIC's ESG management and practice achievements which have been reviewed and confirmed by the board in March 2022. [...] Followed the higher standard, we enhance the momentum for sustainable development. Faced with the challenges posed by the epidemic and uncertainties, we were guided by the advanced sustainable development concept and formulated the sustainable development strategy. We strengthened the top-level design and worked out the ESG strategy and action plan. The Board of Directors set up the "Strategy and Investment Decision and ESG Committee" to professionally steer the sustainable development. We signed the international principles of sustainability and became the second enterprise that signed the UN Principles for Sustainable Insurance and the fourth asset owner that signed the UN Principles for Responsible Investment in mainland China. We also signed the "Belt and Road" green investment principle and established higher standard for sustainable development which we will conscientiously follow.

CPIC has introduced ESG management to provide governance and organizational support to meet the requirements of China's "dual carbon" initiatives. The Company has set up a complete ESG governance structure encompassing "board-management-execution" with clear responsibilities at each level, and embedded sustainable development into all business processes to promote the green and low-carbon development of the economy and society. [...] The highest decision-making body for ESG, responsible for overall supervision of the development and implementation of ESG plans and decision-making on the Group's ESG strategies. Responsible for identifying ESG risks, setting ESG objectives and plans, management policies, performance appraisal, etc., and monitoring the implementation of ESG strategies. Responsible for establishing and improving ESG management framework, management system and working mechanism, etc., promoting the integration of ESG into the daily work of all business lines and functional departments of the Group and its subsidiaries, and coordinating resource allocation. Responsible for coordinating and promoting the implementation of ESG-related policies and regulations, working mechanisms and guidelines throughout the Group, and supervising the implementation of key ESG tasks and projects. Responsible for implementing specific ESG tasks, Functional Depts and Subsidiaries ESG risk prevention and control, and ensuring the effectiveness of ESG management. All subsidiaries of the Group have also established their own ESG organizational structure, ESG working committee and ESG office with clearly-defined responsibilities, workflow and evaluation mechanism. In addition, they have set up special work teams. For example, CPIC P/C set up a sustainable development research center to lead the execution of its green finance work, and all its 40 branches also established organizational structure for green finance; CPIC AMC set up an ESG investment and research work team under its Securities Investment Decision-making Committee to promote green investment.

CPIC places high importance on our Environmental, Social, and Governance (ESG) efforts. We leverage our insurance expertise to continually strengthen our core ESG competencies, diversify ESG practices, and fulfill ESG regulatory demands, thus powering the sustainable economic and social development with insurance solutions. **ESG Oversight and Integration:** We embed ESG principles into our corporate governance, establishing an effective and transparent ESG governance framework. The Board of Directors, serving as the highest ESG decision-making body, oversees all ESG activities, routinely deliberates and debriefs ESG progress and the development of critical ESG frameworks. The Group's Strategic and Investment Decision-making and ESG Committee, functioning under the Board, identifies and assesses CPIC's ESG risks and pivotal ESG issues, devises ESG strategies, sets ESG goals, plans, and performance assessment arrangements, supervises ESG plan execution, and fosters ESG integration into our operational and management practices. **ESG Policy and Strategy: We persist in executing** our Environmental, Social and Governance Plan (2023-2025), improving our management approaches and strategies in alignment with our annual sustainability priorities and in response to a variety of internal and external factors, including regulatory mandates, shifts in the economic and social landscape, and adjustments to our corporate strategy. In line with stakeholder surveys, we concentrate on material issues like supporting the real economy, enhancing customer service, and bolstering risk management, thus addressing stakeholders' needs comprehensively. **ESG Goals and Execution: We meticulously refine** activities in sustainable insurance, responsible investment, ESG risk management, and green, low-carbon operations, annually reviewing our sustainable development endeavors and gauging ESG governance effectiveness. In 2023, the Board of Directors deliberated and approved the Proposal for Investment in the Green Carbon Science and Technology Fund in the Greater Bay Area, Proposal for Responsible Investment Policies, and 2023 Semi-Annual Performance Report. Also, the Board was briefed on the Mid-Year Progress Update on Key ESG Initiatives. Additionally, the remuneration of executive directors and management of CPIC is tied to ESG performance indicators, embedding the ESG ethos throughout the Company's routine operations in a top-down manner, ensuring the thorough enactment of ESG management requirements. This report, reviewed and approved by the Board of Directors in March 2024, elaborates on CPIC's management and advancements in the abovementioned areas and other material matters.

We improved the operation mechanism of the Group ESG Working Committee to enhance its oversight and coordination of ESG practices; each major subsidiary has established an ESG governance structure with Board leadership and involvement of senior management. [...] CPIC has set up a complete Group-level ESG governance structure encompassing 'board-management-execution' with clear definition of responsibilities at each level, and embedded sustainable development into all business processes. The Company' s governance structure for climate change is aligned with its ESG governance structure. [...] To ensure smooth operation of the ESG Working Committee and strengthen the supervision and co-ordination of ESG work, CPIC formulated 'Rules of Procedures of Group ESG Working Committee' in 2023. President of the Group serves as Chairman of the Committee, while the senior executive in charge of ESG serves as the Executive Vice-chairman of the Committee. The ESG Office, as the executive body of the Committee, is responsible for promoting the implementation of ESG plans and improving ESG mechanisms, and supporting CPIC subsidiaries in their effort to carry out business-adjusted climate change actions. [...] As the top decision-making body for ESG work, the Board of Directors attaches great importance to the progress of key ESG agendas such as climate actions. The Group management regularly reports to the Board on ESG-related matters and the progress of ESG agendas, covering sustainable insurance, ESG investment, ESG management system, and efforts to serve China' s national strategies. [...] In 2023, CPIC continued to improve its climate-related mechanisms and formed a closed-loop management system integrating target setting, process supervision and performance assessment. Based on the 3-year ESG plan, we set annual ESG objectives and defined key tasks for the Group and each business line, and conducted regular ESG Working Committee meetings, ESG Investment Working Group meetings, and ESG meetings on the operation units to monitor and supervise the implementation of key programmes. At the end of the year, the Company reviewed and evaluated the progress of key tasks and objectives for the past year.